Global Crude Oil Prices Plunge Over 5%
Jakarta, CNBC Indonesia - Global sentiment has provided a boost to world oil prices, but this has resulted in a drop of over 5% in Wednesday’s trading (28/5/2026). The decline was triggered by comments from US Secretary of State Marco Rubio, who stated that Washington remains open to successful negotiations with Iran.
Citing CNBC International, West Texas Intermediate (WTI) crude oil contracts closed down more than 5% at $88.68 per barrel, while global benchmark Brent crude also fell over 5% to end at $94.29 per barrel.
Rubio made the remarks during a cabinet meeting at the White House, stating that talks between the US and Iran showed positive progress despite ongoing tensions in the Middle East. Although President Donald Trump prefers diplomacy, he has other options if negotiations fail, likely referring to potential military strikes.
“The key is we prefer a negotiated diplomatic path and will give every opportunity for it to succeed,” Rubio said, according to CNBC International on Thursday (28/5/2026).
US President Donald Trump also stressed that Iran would not be allowed to control the Strait of Hormuz in any deal. The strait is a vital global energy trade route, with around 20% of the world’s oil supply passing through before the conflict erupted.
“That strait will be open to all. It is international waters; no one will control it,” the president said during his cabinet meeting.
Previously, citing Reuters, Iranian state television stated that Tehran had committed to restoring commercial traffic through Hormuz to pre-war levels within a month of a US agreement. Iran proposed joint management of ship traffic with Oman, but the White House denied the report of a memorandum of understanding, calling it “complete fabrication.”
Oil markets had been volatile in recent days as the US and Iran neared an agreement while facing the risk of new military escalation. US forces launched strikes in southern Iran, which the Pentagon described as defensive measures. In response, Tehran threatened retaliation.
Industry experts doubt oil flows will quickly return to pre-war levels. Despite renewed diplomatic prospects, market participants believe oil supply recovery will not happen swiftly.
Abu Dhabi National Oil Company (ADNOC) chief Sultan Ahmed al-Jaber previously estimated global oil flows would take at least four months to reach 80% of normal capacity, even if the conflict ended immediately. He added that full recovery is likely only by the first or second quarter of 2027.